LIC Jeevan Azad

What is LIC Jeevan Azad?

The Life Insurance Corporation of India launched a new plan, LIC Jeevan Azad on 19th January 2023. The plan is designed to offer the dual benefits of protection and savings. In case of the unfortunate death of the policyholder, the plan will offer death benefits to the nominee. On the other hand, if the policyholder survives til the end of the policy tenure, he/she will receive the maturity benefit.

LIC Jeevan Azad Eligibility Criteria

What are the Benefits of LIC Jeevan Azad

The benefits payable under the plan are:

1. Death Benefit

   In case of the unfortunate death of the policyholder, the plan will pay Sum Assured on Death. Sum Assured on Death is the highest of 7 times of annualized premium or Basic Sum Assured. 

   The death benefit is not less than 105% of all premiums paid till death. 

2. Maturity Benefit

   On successful completion of the policy tenure, ‘Sum Assured on Maturity’ will be paid to the beneficiary. 

3. Tax Benefit

   Premiums paid under LIC Jeevan Azad are exempted from tax under Section 80C. Also, the maturity and death benefit amount are also tax-free under Section 10D(D) of the Income Tax Act, 1961.

Optional Benefits Under LIC Jeevan Azad Plan

LIC Jeevan Azad offers several optional benefits, through which the policyholder can enhance their coverage by paying an additional premium.

1. Optional Riders

   LIC Jeevan Azad offers 3 additional riders 

   • LIC Accidental Death & Disability Benefit Rider

     In the event of an accident, the Accident Benefit Sum Assured will be paid in a lump sum to the beneficiary. 

     Whereas in the case of disability, arising out of an accident within 180 days from the date of the accident, an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments for 10 years. All future premiums will be waived in the event of accidental disability arising from an accident.

   • LIC Accident Benefit Rider

     In case of accidental death, the Accident Benefit Sum Assured will be paid in lump sum along with the death benefit of the base plan.

   • LIC Premium Waiver Benefit Rider

     Under this rider, on the death of the policyholder, the pending premiums of the base policy that are due on and after the date of death till the expiry of the rider term shall be waived.

2. Death Benefits in installments

   Under the policy, one has the option to receive death benefits in installments over 5 years rather than a lump sum payment. The installments must be paid in advance at chosen intervals of annually, half-yearly, quarterly, or monthly, subject to a minimum installment amount for different payment modes, such as 

   Mode of Installment Payment	Minimum installment amount
   Monthly	Rs. 5,000/-
   Quarterly	Rs. 15,000/-
   Half-Yearly	Rs. 25,000/-
   Yearly	Rs. 50,000/

3. Settlement Option (for maturity benefit)

   Under the policy, a policyholder can choose to receive maturity benefits in installments over 5 years. The installments will be paid in advance at chosen intervals of annually, half-yearly, quarterly, or monthly, subject to a minimum installment amount for different payment modes, such as 

   Mode of Installment Payment	Minimum installment amount
   Monthly	Rs. 5,000/-
   Quarterly	Rs. 15,000/-
   Half-Yearly	Rs. 25,000/-
   Yearly	Rs. 50,000/

Sample Premium Illustrations of LIC Jeevan Azad Plan

Below mentioned is the sample premium illustration of the plan. The premiums are calculated for the Basic Sum Assured of Rs 2 lakh with different ages and premium paying terms.

Policy Details of LIC Jeevan Azad Plan:

1. Grace Period

   The plan comes with a grace period of 15/30 days from the date of the first unpaid premium. If the premiums are not paid during this period, the policy will lapse and the policyholder will not be entitled to receive any benefits.

2. Policy Revival

   One can renew their lapsed policy within 5 consecutive years from the date of the first unpaid premium by paying all the arrears of the premium together with interest (pre-determined by the company.)

3. Loan Facility

   The plan provides the policyholder with a loan facility, wherein, one can avail loans provided at least two full years’ premiums have been paid.

4. Free-Look Period

   A free-look period of 30 days from the date of policy commencement is provided to the policyholder, during which he/she can cancel their policy by stating the reasons for objections. 

5. Policy Surrender

   One can surrender the policy at any time only if all the premiums are paid for 2 years consecutively. On surrendering the plan, LIC will pay a surrender value equal to special surrender value or the guaranteed surrender value, whichever of them is higher.

6. Rebates

   The plan offers rebates as per the below-mentioned table:

   Mode Rebate
   Quarterly, Monthly (NACH) & Salary deduction	NIL
   Half-yearly mode	1% of Tabular premium
   Yearly mode	2% of Tabular Premium

   High Sum Assured Rebate
   Basic Sum Assured (BSA)	Rebate (Rs.)
   Up to 2,75,000	Nil
   Up to 3,00,000 to 3,75,000	0.50% BSA
   Up to 4,00,000 to 4,75,000	1.50% BSA
   Rs. 5,00,000	2.00% BSA

Policy Exclusions

• If the policyholder commits suicide during the first year of the policy, LIC will not accept any claim under this plan except for 80% of the premiums already paid, only if the policy is in force.

• If the policyholder commits suicide within the year from the revival date, the nominee can claim the higher 80% premiums paid to date or the acquired surrender value.